Abstract: The paper analyzed dead-time effect and working principle of diode-clamped three-level inverter, proposed a dead-time compensation method which is suitable for diode-clamped three-level inverter based on double carrier modulation. By adjusting dead-time of trigger pulse on different current flow paths, the method realizes level conversion unaffected by dead-time, which means avoiding or reducing dead-time effect. The simulation result shows that the method reduces the 5th and 7th harmonic contents and total harmonic distortion, increases effective current value and has better compensation effect compared with normal dead-time compensation method.